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Expected Usage Product 1 Expected Cost $6,000 $3,000 $4,500 Product 2 200 Activity Purchasing & receiving Materials Storage of materials Moving materials 800 Driver Purchase
Expected Usage Product 1 Expected Cost $6,000 $3,000 $4,500 Product 2 200 Activity Purchasing & receiving Materials Storage of materials Moving materials 800 Driver Purchase orders Square feet storage Parts Total 1,000 1,000 300 400 600 200 100 Machine maintenance $9,000 Machine hours 1,000 2,000 3,000 Support Cleaning workspace $1,500 Square feet production 3,000 2,000 5,000 Factory security $6,000 Square feet production 3,000 2,000 5,000 Assuming Your Co uses the ABC method to assign overhead, calculate the following ABC rates: a) Purchasing & receiving Iper PO b) Storage of materials per sq. ft storage c) Moving materials per part d) Machine maintenance per mach.hr e) Cleaning workspace per sq.ft production f) Factory security per sq.ft production X X X x x Calculate the overhead assigned to products 1 & 2 from each cost pool: Product 1 Product 2 X X x X g) Purchasing & receiving h) Storage of materials i) Moving materials i) Machine maintenance k) Cleaning workspace Factory security m) Total overhead x X Assume 1,000 units of product 1 and 500 units of product 2 were produced. Product 1 Product 2 p) Overhead cost per unit
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